Have plenty in 529, but still taking out loans

[Anonymous]

Anonymous wrote:Suppose we wiped away all student debt today. What would it mean for a student about to enroll in college this fall?

It means they would be smart to borrow every penny they could for school, and hope and pray for a politically inevitable second round of loan forgiveness. Maybe they would even choose a more expensive school. Why not?

At the same time, colleges and universities would certainly notice this increased willingness to pay higher tuition prices and would accordingly adjust prices upward — only adding to the already out-of-control tuition inflation.

It’s important for Biden to keep in mind that broad student loan forgiveness, while politically popular, would only exacerbate underlying problems with tuition inflation and overborrowing.

This really is the biggest downside in my opinion. Student Loan forgiveness will make a terrible situation of unaffordable education even worse.

Econ 101 is that subsidies are (typically) going to raise the price of a good/service.

[Anonymous]

They should offer $20,000 forgiveness on loans taken before 2022 and make all future federal student loans interest-free.

[Anonymous]

Anonymous wrote:The ignorance about financial aid is astounding.

EVERYONE, regardless of family income, is eligible for an unsubsidized federal Stafford loan.

https://studentaid.gov/understand-aid/eligibility/requirements

Basic Eligibility Criteria

Our basic eligibility requirements are that you must

demonstrate financial need (for most programs);

be a U.S. citizen or an eligible noncitizen;

have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);

be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;

be enrolled at least half-time to be eligible for Direct Loan Program funds;

maintain satisfactory academic progress in college or career school;

sign the certification statement on the Free Application for Federal Student Aid(FAFSA®) form stating that
you are not in default on a federal student loan,
you do not owe money on a federal student grant, and
you will use federal student aid only for educational purposes; and

show you’re qualified to obtain a college or career school education by
having a high school diploma or a recognized equivalent such as a General Educational Development (GED) certificate;
completing a high school education in a homeschool setting approved under state law (or—if state law does not require a homeschooled student to obtain a completion credential—completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law); or enrolling in an eligible career pathway program and meeting one of the "ability-to-benefit" alternatives described below.

Exactly. If you are not taking advantage of these loans, you are leaving money on the table. Especially given inflation and the very really possibility that the loans will be forgiven.

[Anonymous]

I think the current policy makers in the White House need to go back to the proposals that Obama’s 2014 student loan legislative proposals. Obama understood that it would require Congressional action to fix what has become a real issue. His proposals were intelligent, sound and would do a lot to create incentives for lower cost and quality.

Yet another reason that I miss Obama and his intelligence.

[Anonymous]

Ok --- Loans taken out today will never be forgiven. One time deal.

[Anonymous]

Anonymous wrote:I think the current policy makers in the White House need to go back to the proposals that Obama’s 2014 student loan legislative proposals. Obama understood that it would require Congressional action to fix what has become a real issue. His proposals were intelligent, sound and would do a lot to create incentives for lower cost and quality.

Yet another reason that I miss Obama and his intelligence.

Biden is just stupid if he does blanket loan forgiveness.

Cancelling student loan debt to help struggling borrowers would be like addressing hunger by making groceries free instead of expanding SNAP (aka “food stamps.”) A poorly targeted approach that ignores existing infrastructure.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think the current policy makers in the White House need to go back to the proposals that Obama’s 2014 student loan legislative proposals. Obama understood that it would require Congressional action to fix what has become a real issue. His proposals were intelligent, sound and would do a lot to create incentives for lower cost and quality.

Yet another reason that I miss Obama and his intelligence.

Biden is just stupid if he does blanket loan forgiveness.

Cancelling student loan debt to help struggling borrowers would be like addressing hunger by making groceries free instead of expanding SNAP (aka “food stamps.”) A poorly targeted approach that ignores existing infrastructure.

There isn’t a single moral argument for forgiving student loans debt that wouldn’t be 100 times stronger for forgiving auto-loan debt for people who bought non-luxury cars. Most people don’t have college debt because most people don’t even go to college.

[Anonymous]

I would like to remind everyone that the federal government already has a program for student loan forgiveness. You make payments equal to 10% of your discretionary income (15% in some cases) for 20 years (25 in some cases), and your loans are forgiven. That's it!

You can, of course, pay more and possibly be done in 10 years

For some borrowers, they will qualify for shorter terms, such as 10 years for qualifying "public service" jobs (I qualified for this). But the broader 20-year forgiveness is available to almost everyone

There were some hiccups to the program early on, but these are mostly being fixed by the Biden administration as the first wave of PSLF borrowers become eligible. By the time the first 20-year payers are eligible, it will mostly work fine.

https://studentaid.gov/manage-loans/repayment/plans/income-driven

[Anonymous]

Let me get this straight. Some of you are going to encourage your kids to take out student loans based on the prediction that they MIGHT get forgiven in the future, but then you are going to vote for Republicans because you think loan forgiveness is a stupid Dem idea???

Further evidence that GOPers really are lacking in critical thinking skills.

Also, anyone who voted for Trump cannot be said to be against taxpayers picking up the debt for loans that cannot be repaid. How many times did that man soak they system with his bankrupt businesses???

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think the current policy makers in the White House need to go back to the proposals that Obama’s 2014 student loan legislative proposals. Obama understood that it would require Congressional action to fix what has become a real issue. His proposals were intelligent, sound and would do a lot to create incentives for lower cost and quality.

Yet another reason that I miss Obama and his intelligence.

Biden is just stupid if he does blanket loan forgiveness.

Cancelling student loan debt to help struggling borrowers would be like addressing hunger by making groceries free instead of expanding SNAP (aka “food stamps.”) A poorly targeted approach that ignores existing infrastructure.

There isn’t a single moral argument for forgiving student loans debt that wouldn’t be 100 times stronger for forgiving auto-loan debt for people who bought non-luxury cars. Most people don’t have college debt because most people don’t even go to college.

Unless you are the founding editor of The Dispatch, you really shouldn't try to pass this off as your own opinion. Shame on you.

And if it is you - love the dogs!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Biden talked about, like, $10k of loan forgiveness for people making under a certain threshold annually. There will never be full cost of attendance loan forgiveness for anyone who wants it.

You can’t take out federal loans for the full cost of attendance. Ex. capped at $5,000 for freshman,$6,500 t try or sophomores etc.

Biden reportedly told lawmakers he is open to forgiving more than $10,000 in debt.

"I am considering dealing with some [student] debt reduction, I am not considering $50,000 debt reduction but I'm in the process of taking a hard look at whether there will be additional debt forgiveness," Biden said Thursday when a reporter asked a question about student debt following a White House speech about aid to Ukraine. "And I'll have an answer for that in the next couple of weeks."

https://www.msn.com/en-us/money/careersandeducation/biden-says-hell-have-an-answer-on-student-loan-forgiveness-in-the-coming-weeks-e2-80-94-but-shuts-the-door-on-2450000-in-debt-relief/ar-AAWHP6x

Parents can take out up to the cost of attendance in parent plus loans for their kids. So $100k+ in loans. Those are considered federal loans as well.

And those loans are part of the group that have been at 0% interest rate and no payments during COVID. Free money!

[Anonymous]

They should forgive zero loans. I mean I don’t care if zero percent interest over 40 years if necessary.

[Anonymous]

I know a couple of middle class/lower middle class families that have taken out truly insane amounts of loans for their kids. I hope that’s uncommon. I know someone whose family owes a total of $140,000 for their child’s completed bachelor’s degree at Pitt. They’re instate for it. I know this because they’ve brought it up in conversation. I know someone who has been taking out the whole cost of attendance for their child’s (OOS) degree at UDel.

[Anonymous]

If you beat cancer through chemotherapy and surgery and 20 years from now they can cure the same cancer with one pill are you going to be mad?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We saved heavily for our DDs college and have about $250K in the oldest and $210K in the youngest. We should have enough to pay full freight for any school they get into.

However, since it looks like student loan forgiveness is going to happen, I’m inclined to change our plan and have them take out at least some level of loans just in case the next Democratic president decides to do another loan forgiveness right before an election. It looks like the interest will be subsidized while they are school and we can use the 529 funds for grandchildren or even take it out and pay a penalty.

Is anyone else thinking this way?

You think you are a genius, but you are so sleazy.

Why the HELL should my tax dollars pay for your kid's tuition, when you have plenty of money to pay for it yourself?

Most people with college loans never even finished college. They have a slim chance of being able to repay AND secure their own financial footing.

People like you are sickening, and are likely the same ones who complain about government handouts.

I am 99% sure the bolded is complete and utter nonsense, but I'm willing to look at any support you might muster for it.

It is 39%, so not exactly "utter nonsense."

https://www.wral.com/fact-check-how-many-student-loan-borrowers-failed-to-finish-college/19524091/

But a larger question you should ask yourself is why you hold opinions when YOU have no data to back them up?